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UK Politics

George Osborne warns Scotland that a 'Yes' vote will mean losing the pound

The Chancellor said that a currency union with the rest of the UK would 'not work'

Chancellor George Osborne said today that the rest of the UK would not enter into a currency union with an independent Scotland.

Outlining the implications of a Yes vote in the forthcoming referendum on 18 September, Mr Osborne said such a deal would “not work” and was “not going to happen”.

The Tory went to Edinburgh to deliver the stark message to Alex Salmond’s Scottish Government, which has set out plans to create a “ sterling zone” with the rest of the UK if Scotland break away.

Mr Osborne said: "The SNP says that if Scotland becomes independent, there will be a currency union and Scotland will share the pound.

"People need to know that is not going to happen.

"Because sharing the pound is not in the interests of either the people of Scotland or the rest of the UK." 

He said official advice from civil servants on the the key issue of currency was that "they would not recommend a currency union to the Government of the continuing UK".

Mr Osborne said: "Listening to that advice, looking at the analysis myself, it is clear to me I could not, as Chancellor, recommend that we could share the pound with an independent Scotland.

"The evidence shows that it wouldn't work, it would cost jobs and cost money. It wouldn't provide economic security for Scotland or for the rest of the United Kingdom."

He added: "I don't think any other Chancellor of the Exchequer would come to a different view."

Labour Shadow Chancellor Ed Balls and Liberal Democrat Chief Secretary to the Treasury Danny Alexander are expected to take a similar line.

Additional reporting by Press Association

Read more: Osborne accused of 'bullying' Scottish people into 'No' vote